Current Assets and Current Liabilities are terms used to refer to the financial standing of a business. Current Assets refer to any asset or resource that can be liquidated within a year such as cash, inventory, or accounts receivable. On the other hand, Current Liability is a debt or obligation that must be settled within a year such as accounts payable, accruals, taxes, and short-term loans. Together, these two concepts provide an overview of a business’s short-term liquidity and ability to meet its current liabilities with its current assets.